KYC

Turing Example - OnChain KYC

KYC

Regulation is coming, there is no doubt. Some examples:

• The famous Otherside contract from YugaLabs required KYC on launch

• Some DeFi applications will be required to add KYC as well, depending on how regulations progress (EU, US, ..).

DeFi apps currently face a huge problem when trying to comply with those new regulations. But the good news is, Turing can help with this!

With Turing you can build your own KYC gatekeeper for specific smart contract functions with ease. We have written a simple modifier for that, which does the check for you. All you need to do, is checking a wallet's KYC status on the AWS backend and return if the wallet is allowed to call the smart contract function.

The idea is, that the user has to once KYC his wallet on any KYC provider that supports KYCing wallets. The KYC process itself is completely independent of this code base, as well as the process associated with it.

This means, that smart contracts that implement this KYC gatekeeper, will actually query the KYC status of the user's wallet and will revert for a KYC-only function, if the user hasn't KYCed his/her wallet yet. That's the magic :-).

This example basically consists just like all other Turing use cases, of a TuringHelper.sol and its corresponding interface called ITuringHelper.sol. The TuringHelper is just as usual needed, to actually be charged for your off-chain calls and to limit unauthorized access (refer to permittedCallers etc.). Please refer to the appendix of this ReadMe or to the general Turing documentation.

Our actual example lives in KYCExample.sol and its only purpose is to show you that you can constrain the access to specific smart contract functions based on whether a wallet has been KYCed (associated with a person's identity) by using a trusted KYC provider of your choice or not. As you can see, the example actually doesn't contain much code, but uses actually a so-called modifier named onlyKYCed which limits access to that function to KYCed wallets.

function onlyForKYCedWallets() external onlyKYCed {
        emit FunctionCall("onlyForKYCedWallets");
    }

As you can see above, simply annotating a function with the specified modifier limits the wallets that have access to this function. If a wallet is not KYCed then it simply reverts. Your TuringCall basically returns true for KYCed or false for non-kyced wallets.

For that reason the real magic happens on the Turing backend, which basically queries the KYC status of the sender's wallet and returns either true or false depending on a wallet's KYC status. What type of provider you support and add to your Turing API is completely up to you.

Project structure

contracts/
│   KYCExample.sol
└───access/
│   │   KYCWrapper.sol
└───common/
│   │   TuringHelper.sol
│   │
│   └───interfaces/
│       │   ITuringHelper.sol

Inside the folder, run yarn install.

0. Make sure that your have AWS SAM installed.

You can find instructions here. Assuming you have the AWS CLI and have everything set up correctly, installing SAM should just take two commands. On a Mac with homebrew, for example,

$ brew tap aws/tap
$ brew install aws-sam-cli

1. Local testing of the example server

This assumes you have python-lambda-local installed. If not, install it via pip3 install python-lambda-local.

$ yarn start:lambda

If everything is working correctly, you will see:

{'statusCode': 200, 'body': '{"result": "0x00000000000000000000000000000000000000000000000000000000000000200000000000000000000000000000000000000000000000000000000000000001"}'}

2. Local testing of the example SAM deployment

$ yarn start:lambda-sam

This will build and run the server image. It will ingest example inputs, as above.